Markets moved towards risk assets following news out of Beijing that the nation would ease on COVID restrictions. The US dollar is weaker across most of its peers. In the UK, the country is holding a confidence vote for Prime Minister Boris Johnson, the vote will be held between 6-8pm local time and results are expected to be released shortly after.
Economic Events this Week:
Wednesday: EU GDP
Thursday: US Initial Jobless Claims, ECB Main Refinancing Rate, ECB Deposit Facility Rate
Friday: US CPI, US Univ. of Michigan Sentiment, CA Unemployment Rate
June 6, 2022
EUR/USD 1.0713 GBP/USD 1.2547 USD/CAD 1.2547 AUD/USD 0.7221 USD/JPY 130.95 USD/CNH 6.6446 USD/ILS 3.3235 USD/MXN 19.5005 USD/CHF 0.9642 USD/INR 77.63 USD/BRL 4.7821 USD/SGD 1.3740 USD/DKK 6.9436 USD/SEK 9.7450 USD/NOK 9.3856
USDThe dollar weakened against its peers as broad risk appetite improved following news that China is easing some COVID restrictions. There are no upcoming Fed speakers scheduled ahead of the June 15 FOMC policy decision.GBPSterling rallies as the nation returns from holiday despite the imminent confidence vote for Prime Minister Boris Johnson. The vote comes following controversies around the politician including COVID lockdown parties.EURThe EUR remains within a narrow trading range 1.0709-1.0752 ahead of ECB meeting set for Thursday. The euro trades lower than sterling amidst broad risk appetite and ahead of the confidence vote in the UK.CAD
The Canadian dollar is trading higher alongside oil. News that China is easing COVID restrictions has resulted in more risk appetite supporting commodity-linked currencies.ASIA/PACIFICThe Australian dollar gained ahead of the country’s central bank policy decision scheduled for Tuesday. USD/JPY is trading slightly lower on broad USD weakness and ahead of US inflation data due Friday.
For more analysis on FX markets or information regarding SVB's FX services:
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory
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